US-based Sifco Industries, a world-wide provider of highly engineered forged components to the aerospace and energy markets, signed an agreement with Italy’s private equity firm Riello Investimenti Partners sgr to acquire 100% of C*Blade spa Forging & Manufacturing, a leading manufacturer of steam turbine blades and gas compressor blades for the energy market. Closing of the deal is expected by next June (download here the press release).
Sifco has been advised by Carnelutti law firm, while legal advisor to Riello Investimenti was Gianni Origoni Grippo Cappelli & partners.
Headquartered in Maniago (Pordenone). C*Blade was born in 1963 from the merger of Campolin & Beltrame spa and ISTAL srl. Te company counts about 150 employees and has revenues of about 30 million euros.
Riello Investimenti acquired a 51% stake in C*Blade in Summer 2008 buying it from the portfolio al private equity firms Club invest and Barrier capital, while the management led by chairman Giorgio Visentini reinvested in the company
Back then Riello Investimenti acquired its stake after the company reached 14.3 million euros in revenues in 2007 but was due to reach 25 millions in 2008 after having made a hude investment (6.3 million euros) in a very innovative plant which had been able to boost its production and sales. The company was then valued 26 million euros in enterprise value (see here the Private Equity Monitor 2008).
C*Blade acquisition will deliver important strategic benefits to SIFCO’s target markets of aerospace and energy, including broader reach into the steam turbine market and an opportunity to sell C*Blade’s products in the U.S. market.
C*Blade has been in business for more than 50 years and specializes in the mC*Blade is a best-in-class manufacturer of critical turbine components with strong machining capabilities and a long track record of serving both OEM and aftermarket customers. Located in Maniago, Italy, C*Blade has approximately 150 employees and annual revenues of approximately US $30 million. The acquisition is expected to be accretive to earnings. “C*Blade enjoys a strong reputation for its design expertise and high quality products,” said Michael S. Lipscomb, Chairman and Chief Executive Officer. “We are delighted to have reached an agreement with the C*Blade team and plan to leverage their strong capabilities and competitive advantages to become an integral part of SIFCO’s growth strategy.” Chief Financial Officer Ms. Kramer has served in her current role since January 1, 2013. She joined the Company in 2012 as director of financial planning and analysis after spending four years at Greenstar Capital LLC, where she served as managing director and vice president of strategic planning. “While we are disappointed that Kate will be leaving us, we understand and respect her decision to accept an opportunity in an area that has been an important part in shaping her career success,” said Mr. Lipscomb. “We thank her for her many contributions to SIFCO, and in particular for leading us through our first year as an accelerated filer in 2014, and wish her the very best.” Mr. Lipscomb said a national search is underway for Ms. Kramer’s successor. “We are seeking an individual whose skills and experience support our strategic growth objectives, including global opportunities,” he said. Corporate Controller Thomas R. Kubera will serve as interim Chief Financial Officer. Before joining SIFCO Industries in 2014, Mr. Kubera, a CPA, spent nine years at Cliffs Natural Resources, most recently as Controller – Global Operations Services. Forward-Looking Language Certain statements contained in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions, competition and other uncertainties detailed from time to time in the Company’s Securities and Exchange Commission filings. The Company’s Form 10-K for the year ended September 30, 2014 can be accessed through its website: www.sifco.com, or on the Securities and Exchange Commission’s website: www.sec.gov. SIFCO Industries, Inc. is engaged in the production of forgings and machined components primarily for the aerospace and energy markets. The processes and services include forging, heat-treating, and machining. ______________________________________________________________